Asian International Arbitration centre to set up Sarawak branch

The Asian International Arbitration Centre (AIAC) plans to establish a branch office in Sarawak during a signing ceremony on October 19. Deputy Prime Minister Fadillah Yusof affirmed that this move would make dispute resolution services more accessible to businesses and communities in Sarawak and the broader Borneo region. Fadillah, who serves as Energy Transition and Water Transformation Minister, informed the Premier of Sarawak and the Minister in the Prime Minister's Department (Law and Institutional Reform) that the agreement would be signed in their presence.

Fadillah emphasized that this expansion is part of a broader commitment to bolster the Alternative Dispute Resolution (ADR) industry across the region, not merely to open a new office. He highlighted the objective of creating a more robust, accessible, and interconnected ADR ecosystem that caters to local needs while fostering regional growth.

Fadillah expressed encouragement by AIAC's increasing collaboration with the Borneo International Centre for Arbitration and Mediation, the Sarawak Institute of Alternative Dispute Resolution, and other local professional organizations.

The deputy prime minister stressed that a dependable dispute resolution system is an essential component of Malaysia's economic infrastructure, especially as the country continues to attract investments in infrastructure, energy, technology, and advanced industries. He noted that investors require not only favorable policies and business prospects but also assurance that disputes will be handled fairly, efficiently, and predictably, particularly across borders.

Fadillah pointed out that the demand for efficient dispute resolution would escalate as Budget 2027 focuses on projects, contracts, and commercial activities. Consequently, the nation's legal and institutional infrastructure must correspondingly develop alongside its physical and digital infrastructure.

Fadillah's ministry is enhancing the national electricity grid, broadening renewable energy capacity, and improving water security and flood mitigation infrastructure. These long-term investments involve intricate contractual agreements and numerous stakeholders, underscoring the importance of efficient conflict management to prevent disruptions.

Additionally, he encouraged AIAC to continue advancing the Construction Industry Payment and Adjudication Act 2012, a law he introduced over a decade ago. Fadillah expressed his aspiration for the act to remain a robust mechanism for Malaysia's construction industry, serving as a model for adjudication that other jurisdictions can emulate.

He urged AIAC to look beyond commemorating its history as it approaches its 50th anniversary in 2028 and consider the institution it aims to become in the next half-century. Fadillah emphasized that ADR is not a secondary option; it is frequently the most prudent choice.